Riga, 2015-03-02 16:39 CET (GLOBE NEWSWIRE) -- Correction: Management responsibility statement amended to the attached report.
Group has worked successfully over the period from 1 January to 31 December 2014. Total revenue for the period increased by 21% over the 2013 and reached EUR 16 627 992.
Due to implementation of the chosen business strategy, the Group’s financial indicators continued to improve in year of 2014:
- During the period, the Loan portfolio of the Group has increased significantly – by 28% - and reached EUR 6.2 million;
- As at 31 December 2014, the amount of the Group’s assets equaled EUR 10.9 million ;
- Net profit for 2014 was EUR 1 401 563 (2013 EUR 379 116).
During the reporting period, according to the bond issue prospectus, SIA ExpressCredit has elected and registered Council of the Company in the Register of Enterprises of the Republic of Latvia.
Branches
During the period from 1 January to 31 December 2014 has continued the work on the branch network to increase efficiency, loan volume increase and IT systems development. As at end of the period, the Group had 93 branches in 38 Latvian cities (31.12.2013. - 93 branches in 38 cities in Latvian).
Group’s risk exposure
The Group is not exposed to material foreign exchange risk because settlement takes place in euro. The Group has financed assets by bond issue at fixed interest rate, reducing exposure to significant variable interest rate risk. Accurate application of the prudent strategies has allowed the Group to successfully manage its financial risks, particularly, liquidity and credit risk.
Subsequent events
On 12 February 2015, the Group’s parent company and the Riga City council has signed a contract for the purchase of SIA "Riga City Pawnshop" 569 148 (100%) shareholding. The right to acquired shareholding rights have been acquired in the auction process. The purchase price of EUR 880 000 was transferred on 18 February 2015. On 23 February 2015, the transaction was registered in the Register of Enterprises of the Republic of Latvia.
Except for the above, there have been no significant events since the reporting date and the date of signing of the report that could significantly affect the results for the year 2014.
Future prospects
In the year 2015 the Group plans to strengthen market leadership and improve the branch network. It is planned that the company's portfolio and profit dynamics will be with upward trend from year 2014 results.
Profit or loss account for the year ended 31 December 2014
| Parent company | Group | Parent company | Group | ||
| 2014 | 2014 | 2013 | 2013 | ||
| EUR | EUR | EUR | EUR | ||
| Net sales | 7 650 397 | 7 987 859 | 6 395 631 | 6 395 631 | |
| Cost of sales | (5 596 572) | (5 881 617) | (4 678 868) | (4 678 868) | |
| Interest income and similar income | 8 463 985 | 8 640 133 | 7 278 436 | 7 304 487 | |
| Interest expenses and similar expenses | (1 175 458) | (1 216 106) | (1 422 860) | (1 425 319) | |
| Gross profit | 9 342 352 | 9 530 269 | 7 572 339 | 7 595 931 | |
| Selling expenses | (4 812 824) | (4 880 420) | (4 397 795) | (4 405 302) | |
| Administrative expenses | (1 877 951) | (1 883 023) | (1 329 204) | (1 332 376) | |
| Other operating income | 56 328 | 56 328 | 32 377 | 32 635 | |
| Other operating expenses | (1 225 712) | (1 226 186) | (1 309 495) | (1 312 750) | |
| Profit before taxes | 1 482 193 | 1 596 968 | 568 222 | 578 138 | |
| Corporate income tax for the reporting year | (263 264) | (286 038) | (224 730) | (225 810) | |
| Deferred tax | 90 633 | 90 633 | 26 788 | 26 788 | |
| Current year's profit | 1 309 562 | 1 401 563 | 370 280 | 379 116 |
Balance sheet as at 31 December 2014
| Balance sheet as at 31 December 2014 | Parent company | Group | Parent company | Group | |
| 31.12.2014. | 31.12.2014. | 31.12.2013. | 31.12.2013. | ||
| EUR | EUR | EUR | EUR | ||
| Assets | |||||
| Long term investments | |||||
| Fixed assets and intangible assets | 393 949 | 393 949 | 449 822 | 449 822 | |
| Loans and receivables | 462 610 | 462 610 | 297 709 | 297 709 | |
| Loans to shareholders and management | 1 295 066 | 1 295 066 | 1 942 057 | 1 942 057 | |
| Participating interest in subsidiaries | 2 846 | - | 2 846 | - | |
| Deferred tax asset | 117 420 | 117 420 | 26 787 | 26 787 | |
| Total long-term investments: | 2 271 891 | 2 269 045 | 2 719 221 | 2 716 375 | |
| Current assets | |||||
| Finished goods and goods for sale | 1 345 338 | 1 345 338 | 1 012 380 | 1 012 380 | |
| Loans and receivables | 5 401 363 | 5 829 700 | 4 260 989 | 4 602 466 | |
| Receivables from affiliated companies | 484 492 | 208 873 | 547 606 | 512 979 | |
| Other debtors | 82 195 | 82 335 | 748 701 | 755 229 | |
| Deferred expenses | 27 762 | 30 089 | 25 581 | 29 094 | |
| Cash and bank | 1 197 128 | 1 197 718 | 720 753 | 790 889 | |
| Total current assets: | 8 538 278 | 8 694 053 | 7 316 010 | 7 703 037 | |
| Total assets | 10 810 169 | 10 963 098 | 10 035 231 | 10 419 412 |
| Liabilities | |||||
| Shareholders' funds: | |||||
| Share capital | 426 861 | 426 861 | 426 861 | 426 861 | |
| Prior years' retained earnings | 279 540 | 295 703 | 1 009 260 | 1 016 586 | |
| Current year's profit | 1 309 562 | 1 401 563 | 370 280 | 379 117 | |
| Total shareholders' funds: | 2 015 963 | 2 124 127 | 1 806 401 | 1 822 564 | |
| Creditors: | |||||
| Long-term creditors: | |||||
| Bonds issued | 6 471 466 | 6 471 466 | 3 108 191 | 3 108 191 | |
| Other borrowings | 596 676 | 596 676 | 753 094 | 753 094 | |
| Total long-term creditors: | 7 068 142 | 7 068 142 | 3 861 285 | 3 861 285 | |
| Short-term creditors: | |||||
| Bonds issued | 992 436 | 992 436 | 984 967 | 984 967 | |
| Other borrowings | 30 341 | 30 341 | 531 723 | 894 130 | |
| Accounts payable to affiliated companies | - | - | 2 091 469 | 2 091 469 | |
| Trade creditors and accrued liabilities | 435 014 | 456 100 | 404 778 | 407 220 | |
| Taxes and social insurance | 268 273 | 291 952 | 354 608 | 357 777 | |
| Total short-term creditors: | 1 726 064 | 1 770 829 | 4 367 545 | 4 735 563 | |
| Total liabilities and shareholders funds | 10 810 169 | 10 963 098 | 10 035 231 | 10 419 412 |
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SIA ExpressCredit is a licensed non-bank lending institution, which was founded in the 2009. SIA ExpressCredit operates 95 branches under the brand name Lombards24.lv in 38 largest Latvian cities and towns, offering loans against pledge of movable property (Lombard credits), loans without collateral, loan against vehicle collateral and mortgage loans. The Company has provided services to more than 200 thousand customers. The owners of SIA ExpressCredit are SIA Express Holdings (51%), SIA Ebility (24,5%) and SIA AE Consulting (24,5%).
Contacts: Kristaps Bergmanis Tālrunis: +371 29144168 Fax: +371 67809194 E-mail: Kristaps.Bergmanis@expresscredit.lv
